Maryland Comptroller Peter Franchot today penned a letter to county leaders urging them to explore the feasibility of forbearance periods for local taxes.
As previously reported on Conduit Street, Comptroller Franchot earlier this month announced the extension of filing and payment deadlines for certain Maryland business taxes and quarterly estimated income tax returns and payments that would be due in January, February, and March 2021 until April 15, 2021.
According to the letter:
As you know, the COVID-19 pandemic has not only compromised the health and welfare of our residents, but it also has done significant harm to our economy. In Maryland, one of the wealthiest states in the nation, millions are struggling to make ends meet, put food on the table for their families, and keep a roof over their heads. Thousands of small businesses have permanently closed, taking with them desperately needed jobs and revenue they generate for our state and local coffers.
I am very encouraged by President Biden’s announcement that he intends to propose a $1.9 trillion Stimulus Package, one that will include much-needed aid to state and local governments, additional stimulus payments, unemployment subsidies, and small business relief. However, the fact is we – at the state and local levels – must act to provide immediate assistance until Congress passes the President’s Stimulus Package.
Earlier this month, I announced immediate relief for small businesses in the form of a three- month tax forbearance for business taxes and estimated monthly payments, and a two-month forbearance for employer withholding payments. All business tax returns and payments that are due from January through March will be pushed back to April 15th. Similarly, employer withholding payments that are due between February and April, will now be due on April 15th.
As I have with the IRS, I am respectfully urging county governments to consider exploring the feasibility of similar forbearance periods for taxes that you may collect. This temporary extension will allow small businesses to keep as much money in their pockets during these tough times and help them keep the lights on until more federal aid is received.
Thank you for your consideration, and for your partnership as we continue to combat the public health and economic devastation from this pandemic.
Stay tuned to Conduit Street for more information.